To increase the share of climate-neutral fuels within the THG quota, the German government has set binding minimum quotas for advanced biofuels and RFNBOs. While the targets for advanced biofuels are currently feasible thanks to solid market coverage, the ambitious RFNBO quotas are still proving to be a strategic bottleneck given the current low availability.

The greenhouse gas reduction quota (THG quota) obliges companies that place fossil fuels (especially diesel and gasoline) on the market to reduce their CO₂ emissions associated with their sales by a specified percentage each year. Following the implementation of RED III, this percentage is set to increase gradually from 10.6% in 2025 to 59% in 2040.

The biomethane market features a wide variety of commercial contracts. The following section describes the most common sales and purchasing strategies. These range from classic spot trading and flexible volume deliveries to long-term purchase agreements and corresponding indexing of the trading price, e.g., to a publicly traded value.

The biomethane industry in the THG quota market can look back on another turbulent year. After a massive drop in prices in the spring, despite the already relatively low price level beforehand, prices rose again over the summer months and especially in the fall. The current price of 13 ct/kWh at the end of the year has calmed the mood among producers somewhat, but the real fun has yet to begin.

As a renewable energy, biomethane is playing an increasingly important role in achieving the climate targets of the EU and Germany. In addition, since the beginning of Russia's war of aggression against Ukraine, there has been a demand for greater independence from fossil natural gas. This has resulted in a system of regulatory requirements in a wide variety of dimensions...

The use of biomethane in the EU ETS to reduce emissions is a worthwhile factor for more and more companies that should not be neglected. However, various requirements for compliance with sustainability and the associated certification must be met...

A dena analysis estimates that demand for biomethane in Germany will increase in order to meet the requirements of the GEG (Building Energy Act) by 2040. Biomethane demand in Germany for gas heating is forecast to be between 0.5 and 1.8 TWh in 2027 as a result of the GEG 2023. Biomethane demand is expected to rise to 30.2 TWh in the “mid” scenario by 2040. This corresponds to an annual growth rate in biomethane demand for gas heating systems in Germany of ~28%.

Guarantees of Origin (GOs) are used to trace the origin of renewable energy and are issued for various products. For electricity and gas, GOs confirm that they come from renewable sources. A system for the certification of renewable hydrogen is currently under development. These certificates will allow consumers to document the origin of their energy and count it towards their carbon footprint...

The European Biogas Association (EBA) speaks of an annual biomethane production potential of up to 260 TWh in Europe in 2030. If you compare this with the production of 41 TWh in 2022 or with the year 2018 (20 TWh), the enormous growth predicted by market experts becomes clear...